ray pineda deloitte consulting partner june 2014 digital disruption and the bi/dw professional

Ray PinedaDeloitte Consulting PartnerJune 2014

Digital Disruption and the BI/DW Professional

Let’s go Digital.

of small businesses now get at least one quarter of new customers via social media.

of young people refer to social media to decide where to go when they go out.

of Americans check their social networks several times a day.

of Americans check brand pages regularly as part of their social media activity.

of time spent online is for social media.

• If Facebook were a country, it would

be the world’s 2nd largest - 1.3B

• Percent of 18-34 year olds who check Facebook when they wake up - 48 %

• Social Media has overtaken adult

content as the #1 activity on the web

• 1 out of 8 couples married in the US

last year met via social media

78%

61%

27%

35%

27%

Digital engagement is the future

© Deloitte & Touche LLP and affiliated entities.Digital Convergence


A critical mass of new technologies and consumer and client demand is

ushering in a new era of computing, and with it the “Post Digital Age”

6 Billion People worldwide have access to a

mobile phone

The number of mobile-connected devices exceeded

the word’s population in 2012

1

2

3

4

• Projects measured in years• Vast divide between IT and

business• Long adoption curves

• Projects measured in years• Vast divide between IT and

business• Long adoption curves

• Projects measured in months• Bridging gaps between IT and

business• Accelerated adoption

• Projects measured in weeks

• IT and business collaboration

• Accelerated adoption

Mainframe

Client/Server

Web

Digital

5

• Several technology forces have manifested at the same time, all of which are powerful change agents on their own

• The collision of these forces makes their impact even more significant

A new kind of User



Demands a new approach

Post-digital forces are transforming business and changing

expectations on how we deliver value

• Industrial design• New business models• Iterative approaches• Rapid prototypes• Shorter time to value

• Design thinking• Creative• Agile• User experience• Mobile app

development• Innovation services

• Personalized• Anywhere/anytime/

anyone• Contextualized• Intuitive• Faster time to value• Pilots and experiments

New Approac

h

New Skills

New Outputs

© Deloitte & Touche LLP and affiliated entities.


Key trends in digital

Mobile firstMobile is fast becoming the new desktop for consumer markets. Responsive design, mobile apps, location based intelligence are all changing how users interact and transact with service providers.

1st

Social media, crowd support and gamificationSocial media has become a key method for organizations to sell, support and promote. This has evolved to include crowd support, and gamification to facilitate 2-way interactions.

Personalizing the experienceThrough design and intelligent technology choices, organizations can deliver a tailored and progressively personalized digital experience.This provides value to customer and enables the organization to tailor services.

Organizing for successHaving the right capabilities, structure, governance and defined interactions to innovate and operate the channel is key to digital success.Accountability and ownership are key for the right return on digital investment.

Easy service and channel experienceUsers expect digital interactions and transactions to be easy (forms, workflows, communication). Anything short of an exceptional user experience will negate the value of your digital assets.

© Deloitte & Touche LLP and affiliated entities.


Cyber Intelligence

The convergence of the four disruptive technologies is changing the way businesses must respond to individuals’ needs and expectations.

Private versuscompartmentalized

Analytics Social Business

Mobility Cloud

Deconstruct organizational silos; empower collaborative networks

Who you know and who they know form strong and weak connections

Location independent but location aware

Un-tether your enterprise; empower users where business actually occurs

Move from descriptive to predictive and prescriptive

Decision making based on real-time insights

Achieve Cloud agility and elasticity with little initial investment

Move past the static ecosystem; empower the dynamic value chain

Disruptive Technologies


Digital disruption


Career in analytics

What does it mean to BI?

Analytics


Business Analytics uses data to generate predictive insights to make better informed and timely decisions that will drive strategy and improve performance

Analytics Defined


Turning data into actionable insight

Data analysis and reporting allows the business to view past and current results. By adding Advanced Analytics, foresight is applied to future decision making returning more value to the business.

Data Warehouse/Operational Reporting Business Intelligence/Business Analytics

Looking back Looking forward

Understand Predict

Analyze Optimize

What happened? What will happen?

Slice and dice Discover and simulate

Key Performance Indicators (KPI’s)

Key Performance

Predictors (KPP’s)

Pre

se

nt

Data Analysis Tools

Data Harmonizationand Standardizations

Application of Business Drivers

Information Visualization Tools

Empowered decision making

Use appropriate Information

Delivery

$Data Reports + Insight Business Value $

Constant Optimization


Making analytics relevant to the heart of clients’ business with Deloitte Analytics domains

FinanceAnalytics

RiskAnalytics

WorkforceAnalytics

Supply ChainAnalytics

CustomerAnalytics

Companies should have a more complete intimate understanding of their customers to get them, grow them, and keep them.

Many leaders want to take advantage of the benefits of risk analytics to limit risk exposure or to take certain risks to generate returns.

Finance managers have applied analytics to better understand the present and more accurately predict the future.

Workforce reporting and analytics achieves greater visibility and deeper insights into the most complex workforce-related challenges.

Apply analytics to achieve forward-looking insights combined with the disciplined execution of the supply-chain function.


Top performing companies use analytics – the trend indicates every company will do analytics as part of their new normalA recent MIT/Sloan study revealed that, on average, top performing companies use analytics almost three times as much as lower performing companies in daily operations and decisioning.1

1. Organizations that identify themselves as substantially outperforming their competitors are three times more likely to be sophisticated in their use of analytics. Analytic “Sophisticates” outperform Information “Starters“ by a 3X margin – MIT Sloan Management Review, 2010


Business Analytics to Thrive: Growing from $60 Billion (2012) to $81 Billion (2014)

Source: Gartner, Inc.

Social Business


Social Media -> Social Business


Mature

Emerging

Simple ComplexManagement Complexity

Business

Usage

Maturity

Social BusinessUnstructured Data : 80% of business data


• As consumer conversation continues to move online, social media is becoming ever more important for businesses: both as a channel to engage with consumers and as a source of data to inform broader business decisions

• However, use of social has often proved challenging, for two main reasons:

• Too often, the goals and metrics of social are weakly defined and cannot be tied directly back to business benefits

• There is therefore no way to connect social buzz with sales/profitability:

• The result is that social is often done “because we should”, with no clear strategy or purpose

• So the potential benefits of social aren’t realised, as there is no way to properly understand the financial implications

Healthy scepticism

Senior stakeholders remain sceptical about the business benefits of social : does they

justify the required investment of time/resources?

Lack of proper analytics

Meaningful goals and outputs of social are hard to define and

difficult to tie to business benefits

Am I making money from

engaging with consumers on

social?

Am I realising any direct financial

benefit from investing in social?

Is negative social buzz causing my sales to drop?

The Challenge of Social

?


Kaggle – Go from Big Data to Big Analytics

• What is Kaggle? Crowdsourcing community of data scientists. One engages Kaggle through “Kaggle Connect” or “Kaggle Competition”

• Disruptive Model:

• Enables access to top Data Scientist on a T&M model• Enables solving data problems in a competition manner (All State example) • Heavy focus on machine learning and AI

• Deloitte and Kaggle:• Deloitte is exploring how to leverage platform to help solve our clients’ data problems.

Agreement to experiment and work together to solve client problems.


Gamification Examples You May Have Played Already

Levels, Badges

Progression

Missions

Achievements

Fitbit.com (see quantified self)

Social Graph

http://en.wikipedia.org/wiki/Quantified_Self


Real-World Gamification Example

http://www.thefuntheory.com

1. Speeders get tickets via speed camera

2. Others get feedback on their speed3. Those under the limit get entered into

a lottery4. Random draw wins fine money

• 60% reduction in speeding in test area (India)

• 10% reduction in deployment area (Sweden)

Speed Camera Lottery – Simple Example

http://www.thefuntheory.com/

Cloud Computing


Cloud and SaaS

Reduce the amount of IT capital spending

Reallocation of resources

Increase business agility

Internalization

Ad

optio

n

High

UnawareLow

Awareness

Understanding

Positive Perception

Adoption

Institutionalization

Time

SaaS

Private Cloud

IaaS

PaaS


Service Type Definition Cloud Candidates Sample Vendors

Software-as-a-Service (SaaS)

Customers run finished applications from the cloud service provider on a subscription basis, with no software license, and limited operational control

CRM

HR, Payroll

Finance

Productivity Apps, email, collaboration

Platform-as-a-Service (PaaS)

Customers load and run software on cloud platforms through a subscription service, without visibility to the underlying server environment.

Custom Development

Java, Ruby, and extensions to SaaS environments

Infrastructure-as-a-Service (IaaS)

Customers provision servers, storage, and database services on cloud infrastructure through a subscription service, with direct operational control.

Dev and Test Environments

High compute calculations (e.g., Monte-Carlo scenario analysis)

Web servers

Hosted Applications

Infrastructure Software

Operating Systems

Virtualization

Servers

Connectivity

Data Centre

IaaS P

aaS

Saa

S

Cloud Computing is defined as multi-tenant, on-demand, scalable, elastic, pay-as-you-go IT applications and services, used to deploy a wide variety of solutions

Cloud Services Types


…But Is Fairly Limited In Its Deployment OptionsIa

aSP

aaS

Saa

SA

aaS

Public Cloud

Private Cloud

Public Cloud Characteristics

Quick start-up time

Outsource non-core competencies

Leverage scalable vendor infrastructure

Lower initial fees, variable cost and billby usage

Private Cloud Characteristics

Flexible resource allocation

On-premise systems and data

Leverage existing staff and investments

Utilize virtualization and grid technologyto lower internal costs


Adoption Of Cloud Computing in BI is at its inception

Cloud-Based

BI Services

Main barrier to adoption is trusting your data to a third party provider

Source: Gartner Hype Cycle for BI, 2010

Author

What is CDM if someone asks?

Mobility


Satellite

Internet

NGNIMS

Cellular: 3G, 4G

Delivery Apps

EMRApp

BSS

OSS Apps & Middleware

Standard Middleware

Wi-Fi

Medical Devices

Wireless POS

Smart Phones

Tablet PCs

Wireless scanner

Utilities: Smart Grid

Middleware

SmartHomes

App Stores

Multimedia Content

Media Producers

Retail Banking

Apps

Mid

dle

war

e

Customer Data

ERP, CRM

Banks

Mid

dle

war

eM

idd

lew

are

Mid

dle

war

e

PatientData

Operational Data

Hospitals

Utilization Data

Industrials

App Developers

Sensor Networks

The Mobility ecosystem is complex, expanding rapidly, and increasingly absorbing new stakeholders


Global Mobility Has Changed

“One Size Fits All” benefits structure

Regional policies for cross border moves

No control over costs

No workflow capability

HR / Talent Acquisition completed authorizations

Customizable benefits with core / optional elements

Single, global policy for Assignments and Transfers

Cost management discretion for Managers

Defined workflow forManagers / Employees / HR

Manager initiates authorization process

Previously Currently

Global Mobility


Innovation success story — Mobile Analytics

Client Question:How can we gain better visibility into how we are performing toward strategic priorities?

Solution: Exec iPad app • Heat map view • Key metrics• Live twitter feed


Defining Augmented Reality

1. Combines real and virtual

2. Is interactive in real time Users can view multiple layers of data on a single view

Information is overlaid on the digital image generated by the device’s camera

Location information is further refined using GPS and compass functionality

AR can identify a variety of visual inputs:

• Books/DVDs• Landmarks• Logos• Contact info• Artwork• Businesses• Products• Barcodes• Text

Augmented Reality – a live view of the physical environment overlaid with virtual, computer- generated imagery and information


Mobile BI


Business disruption driven by new technologies

Information explosion

Transparency

Hyper-availability

Security & compliance


Raymond is one of Deloitte’s Information Management and Analytics Technology practice leaders in Canada. He also leads alliances and acquisitions for the Deloitte Analytics Integrated Market Offering (IMO). He has 32 years of Information Technology consulting experience, 17 years as a Consulting partner with Deloitte, and has served numerous clients in developing Strategic Systems Plans and in successfully implementing ERP and Performance Management solutions. He currently specializes in developing Analytics strategies / roadmaps and in leading implementations of large-scale Business Analytics solutions such as Performance Management (Planning/Budgeting/Forecasting and Consolidation applications), Business Intelligence and Data Analytics. Ray is a Certified Management Consultant (CMC) and serves as a business advisor to a number of financial services, public sector, mining and real estate clients of the firm. He currently serves on the Advisory Board of Queen’s School of Business Master of Management Analytics program.

Ray PinedaConsulting Partner

Deloitte Information Management & Analytics

ray pineda deloitte consulting partner june 2014 digital disruption and the bi/dw professional

Documents

digital engagement

affiliated entities

digital disruption

digital convergence0lets

social media activity

social networks

future deloitte touche

post digital age6